When a Client Company Is Using IT Outsourcing, and That

question 15

True/False

When a client company is using IT outsourcing, and that service center has its own auditors who report on internal control, the third-party report from the independent auditors) cannot be used as audit evidence without the auditor performing an adequate amount of compliance testing.

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Definitions:

Authorized Representative

An individual or entity legally empowered to act on behalf of another person or organization.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the capacity to enter into contracts and loans, sue and be sued.

Partnership

A business structure where two or more individuals share ownership, as well as the profits and liabilities of the business.

Alternate Payees

Individuals or entities designated to receive payments on behalf of the original payee, often seen in legal settlements or divorce decrees involving support payments.